Margin

1.Borrowed money that is used to purchase securities. This practice is referred to as “buying on margin”. Investors who buy on margin also need to pay interest rates that are usually above market interest rates. Increased leverage can mean increased gain but also larger losses.

2.In a general business context, margin is the difference between a product’s (or service’s) selling price and the cost of production. You often hear the term “profit margin” being used. It expresses how profitable a company is, usually as a percentage.

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